- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Removing PMI from Wells Fargo Mortgage
Posted on 3/25/17 at 12:58 pm
Posted on 3/25/17 at 12:58 pm
So we bought our home about 27 months ago. We didn't put 20% down originally. Since then we have done plenty of renovations in the house. We have redone all four bedrooms, all theee bathrooms, two living rooms, dining room, and replaced floors in all of those rooms. We haven't added any square footage or anything, so I don't know how that factors in appraisals.
A house two doors from me sold for about $42k more than the appraisal I'd need to be at 80% LTV. Another house three doors down was listed for sale for about $40k more than I'd need for 80% LTV (the listing agent on that house said they had it appraised for the asking price).
With that said, Wells Fargo says that you can potentially remove PMI based on current value of home:
I still have quite a while of paying PMI if I continue as I'm going. It's about $140/month. I'd love to drop it.
Before I contact Wells Fargo about this I thought I'd pop in on the Money Talk Board and ask you smart folks a few questions:
1. Has anyone done this through Wells Fargo?
2. If I have the house appraised for this purpose and it appraises for more than its original value, does this get back to the tax assessor and result in my property taxes going up?
3. Anything I'm missing in this?
A house two doors from me sold for about $42k more than the appraisal I'd need to be at 80% LTV. Another house three doors down was listed for sale for about $40k more than I'd need for 80% LTV (the listing agent on that house said they had it appraised for the asking price).
With that said, Wells Fargo says that you can potentially remove PMI based on current value of home:
quote:
If your home's value went up since closing, you may be able to cancel your PMI earlier, based on its current value. In some cases this can happen if you've made substantial improvements to your home. You'll need to get an appraisal to confirm its value.
I still have quite a while of paying PMI if I continue as I'm going. It's about $140/month. I'd love to drop it.
Before I contact Wells Fargo about this I thought I'd pop in on the Money Talk Board and ask you smart folks a few questions:
1. Has anyone done this through Wells Fargo?
2. If I have the house appraised for this purpose and it appraises for more than its original value, does this get back to the tax assessor and result in my property taxes going up?
3. Anything I'm missing in this?
7
Posted on 3/25/17 at 1:09 pm to lnomm34
Is this a private mortgage or FHA?
Posted on 3/25/17 at 1:13 pm to lnomm34
I don't have the answers for all of your questions, but I did go through the process of getting rid of PMI from Wells Fargo last summer. Just keep in mind you have 2 options:
Option 1: 80% LTV based on current value. Requires new appraisal from WF approved appraiser for $550.
Option 2: 78% LTV of original appraised value. PMI will be automatically cancelled at this point. It is not 80%, you must reach 78%.
It sounds like there is a good chance that your house will appraise for much more than its original value, so option 1 is probably worth it. I didn't want to risk paying $550 for a new appraisal and having it not come back at what I needed it to, so I went with option 2.
ETA: Regarding option 2, people will say stuff like "you can request PMI be dropped at 80%, but they aren't required to drop it until 78%"
None of that means anything. It is 78%.
Option 1: 80% LTV based on current value. Requires new appraisal from WF approved appraiser for $550.
Option 2: 78% LTV of original appraised value. PMI will be automatically cancelled at this point. It is not 80%, you must reach 78%.
It sounds like there is a good chance that your house will appraise for much more than its original value, so option 1 is probably worth it. I didn't want to risk paying $550 for a new appraisal and having it not come back at what I needed it to, so I went with option 2.
ETA: Regarding option 2, people will say stuff like "you can request PMI be dropped at 80%, but they aren't required to drop it until 78%"
None of that means anything. It is 78%.
This post was edited on 3/25/17 at 1:15 pm
Posted on 3/25/17 at 1:28 pm to barry
Conventional
Posted on 3/25/17 at 3:51 pm to lnomm34
I did it a couple years ago. Easy process with them, took about 4 months to make the appraisal fee pay off, but saved me a couple years of pmi payments. When I did it, the appraisal fee was only $400.
This post was edited on 3/26/17 at 9:16 am
Posted on 3/25/17 at 8:50 pm to lnomm34
quote:
1. Has anyone done this through Wells Fargo?
I did this successfully with Wells Fargo last year.
quote:
2. If I have the house appraised for this purpose and it appraises for more than its original value, does this get back to the tax assessor and result in my property taxes going up?
The new appraisal should only be sent to you and Wells Fargo, the information should not get back to the tax assessor, although I can't guarantee your assessed value will not go up.
quote:
3. Anything I'm missing in this?
If your new appraisal does not come in at the required value you are out the appraisal cost and still paying PMI. From what I understand, that is the worst that could happen.
Posted on 3/26/17 at 1:13 am to lnomm34
I did this many years ago with another lender. Smart $350 fee for the appraisal paid for itself in a few months and saved me much more.
I don't think so. Appraisals don't generally get recorded or made public.
quote:
2. If I have the house appraised for this purpose and it appraises for more than its original value, does this get back to the tax assessor and result in my property taxes going up?
I don't think so. Appraisals don't generally get recorded or made public.
Posted on 3/26/17 at 1:37 am to lnomm34
I just went through this with a FHA loan. At closing 5 years ago I was told I could drop once my loan got to the 80% or 78% LTV and after doing upgrades and reaching out to them I was told I couldn't. They told me it was the original Purchase price of the house is what it went off of and I had to get down to the 80%. At the almost 5 year mark in December I reached out to them again and they said I had to have the PMI for 5 years before I could drop it and that it would go away at year 10 with normal payments. I then got an amount of $23,000 to get me to 80% Of the original purchase price of the house to be able to drop the PMI. I paid the $23,000 in February and got my letter that they were dropping the PMI this month.
Not sure why the down votes. I even asked if I wrote the check in December would they drop the PMI and they said they had to charge it for 5 years period no exceptions. The only way for me to get out of it was to refinance the loan.
Not sure why the down votes. I even asked if I wrote the check in December would they drop the PMI and they said they had to charge it for 5 years period no exceptions. The only way for me to get out of it was to refinance the loan.
This post was edited on 3/26/17 at 11:31 am
Posted on 3/26/17 at 6:46 am to lnomm34
I did this last year. I went with option one. my house appraised for more than what I needed to get rid of PMI. I had a couple years left of PMI payments so it was worth it to pay for the appraisal.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News